A coalition of 10 states has filed a lawsuit to block two recent rulemakings by the Office of the Comptroller of the Currency designed to establish a uniform federal framework for national banks operating across state lines. The American Bankers Association supported the rulemakings.
At least 14 states and territories have enacted interest-on-escrow laws in recent years. In May, the OCC finalized two rules asserting federal preemption over such laws, arguing the rules “emphasize federal preemption as a critical tool for reducing unnecessary burden, enabling local and national prosperity, and unleashing economic growth.”
Oregon, New York and eight other states filed a lawsuit in U.S. District Court for Oregon alleging the OCC overstepped its statutory authority in the rulemakings and failed to comply with the requirements of the Dodd-Frank Act.
The OCC maintains that a uniform federal framework prevents individual states from imposing differing requirements that can fragment the national banking market and increase the cost and complexity of serving customers across jurisdictions.
The other states joining in the lawsuit are California, Connecticut, Maine, Maryland, Massachusetts, Minnesota, Rhode Island and Vermont.
